Good News For Pensioners! EPS Scheme Alert: 7 Big Changes By EPFO That Make Pension Claims QUICK And EASY!

EPS Pension Scheme: The Employees' Provident Fund Organization (EPFO) has made several changes in the provident fund and pensions account of salaried individuals from time to time. And in yet another piece of good news for pensioners, EPFO has announced 5 big measures that enable the claiming of pensions more easily and quickly under the EPS scheme. Right from dearness relief rates to facial authentication and UAN activation, here's what you need to know.

1. No Documents Required For Home Improvement

As per the latest circular that was released in April, EPFO is now allowing members to claim funds for home additions or alterations under Para 68B (7). EPFO members will only have to declare that five years have passed since house completion - and without proof of any earlier PF advance.

Hence, this eliminates the need to submit any proof or documents, lowers paperwork burden, and fastens the process for withdrawing a sum for house improvement.

2. No Need To Upload Bank Documents Or Get Employers Approval For Seeding bank accounts with Universal Account Number (UAN)

Now, the employees will not be required to upload a scanned cheque leaves or attest passbook copies anymore when they are in the process to link their bank accounts with UAN number. Not just that, employer approval is also not required anymore.

Thereby, this simplifies the process of updating bank details with EPF portal and lowers the chances of rejection owing to unclear documents.

3. Upgraded IT Systems:

EPFO has upgraded its IT system, which reduces the timeframe for settling EPF and EPS claims. The provident fund body can now automatically verify the eligibility and accordingly approve claims. Now, the time taken for the process of withdrawal is lowered to a week, compared to the previous 10-15 working days.

4. Facial Recognition on UMANG App:

To simplify the entire process of allotment and activation of UAN, EPFO introduced a face authentication service for existing activated UANs.

The only requirement is to download the UMANG app and the Aadhaar Face RD app from Playstore.

There would be no requirement for the initiation of the UAN activation process afresh. By availing this facility member would gain immediate access to EPFO services such as passbook viewing, KYC updates, claim submission etc.

5. Revamped Form 13:

Under the new rule, now when you switch jobs, the only approval that will be needed is from EPFO's source office, to credit your EPF and EPS amount from the old office to the new office. Also, EPFO has removed the requirement of employers' approval. The new process is part of the revamped FORM 13 form which EPFO launched recently.

In its notification on April 25, EPFO announced that with a view to further simplify the transfer claim process, the Form 13 (Transfer-Out) functionality has been since revamped duly incorporating the bifurcation of taxable and non-taxable components of PF accumulations.

6. Dearness Relief (DR) For Pensioners:

In April month, the government increased the dearness relief rate for central government pensioners and family pensioners by 2% to 55% from earlier 53% for basic pensions. This has come into effect from January 1, 2025.

7. Centralized Pension Payments:

The government has rolled out Centralized Pension Payments for all regional offices of EPFO across India.

As per the main statement, the CPPS is a paradigm shift from the existing pension disbursement system that is decentralized, with each Zonal/Regional Office of EPFO maintaining separate agreements with only 3-4 banks. In CPPS, not only the pensioner will be able to take a pension from any bank, but also, there will also be no need for pensioners to visit the bank for any verification at the time of commencement of pension and the pension shall be immediately credited upon release.

These updates show EPFO's push to make pension-related services faster, paperless, and more user-friendly. By cutting down on physical paperwork and introducing digital tools, EPFO is helping members access their benefits more easily and securely, as per Angel Broking's blog.

What To Expect For Pensioners In May 2025?

It has been nearly a decade since the revision of the EPS scheme. Trade unions and other associations have been demanding a hike in EPS since it has been nearly a decade since the minimum pension underwent revisions.

As per reports, the pension body, EPFO has reportedly appointed a parliamentary committee to conduct a third-party review of EPS scheme of 95. Headed by BJP MP Basavaraj Bombay, the committee has reportedly sought the Union Labour Ministry to take action on the matter. The goal of third-party review is to put in place independent experts and gather recommendations regarding EPS which is expected to include revision in EPS.

Many reports state that the minimum pension hike could be Rs 3,000, Rs 7,500 or even Rs 9,000.

Currently, under EPS scheme, the minimum pension is at Rs 1,000 to Rs 2,000. The EPS scheme has been in place for nearly three decades now. Launched on November 16, 1995, the EPS scheme is a social security option, developed by EPFO for employees in all organised sectors. Under EPS, the employer should contribute 8.33% of the employee's salary to the EPS account within 15 days of the closing of every month. Further, the central government is also liable to contribute a 1.16% rate to the funds.